Germany’s Federal Financial Supervisory Authority (BaFin) today issued a warning against stock recommendations made via WhatsApp groups.
The recommendations in the WhatsApp groups often come from supposedly well-known personalities from the financial and stock market world. However, these people often have no knowledge of the respective stock recommendations. Their names or identities are simply used for fake profiles.
BaFin advises all investors to carefully verify the information provided in the buy recommendations with the help of other sources. This is especially true if the stocks are recommended very aggressively for purchase, the promised profits are extremely high, and/or investors are put under time pressure.
The initiators of such WhatsApp groups often entice investors to buy certain stocks in order to profit from rising prices of these stocks themselves.
Recent WhatsApp recommendations include Canaan Inc. shares, as well as:
- Springview Holding (ISIN: KYG837611097),
- Health in Tech. Inc. (ISIN: US42217D1028),
- Lichen China Ltd. (ISIN: KYG5479G1082),
- Iczoom Group Inc. (ISIN: KYG4760B1005),
- Chanson International Holding (ISIN: KYG2104U1076).
The ISINs mentioned indicate the country of origin of the financial instrument. If US precedes the number, the share originates from the United States; KY refers to the Cayman Islands.
